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ARKANSAS LIFE INSURANCE EXAM
2025 |ORIGINAL 240Qs&As|ALREADY
GRADED A+|100% VERIFIED
J is a producer who has induced an insured through
misrepresentation to surrender an existing insurance policy.
What is J guilty of? - ..........ANSWER.......Twisting
What is implied authority defined as? -
..........ANSWER.......Authority that is not specifically given to
an agent contract, but that an agent can reasonably assume to
carry out his/her duties
A person who is a nonsmoker, average weight, excellent health
would fall into what risk classification? -
..........ANSWER.......Preferred
Which of the following is considered to be the period when the
accumulated value in an annuity is paid out? -
..........ANSWER.......Annuitization phase
An insurers claim settlement practices are regulated by the: -
..........ANSWER.......State insurance departments
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An insurers ability to make unpredictable payouts to policy
owners is called: - ..........ANSWER.......Liquidity
Which of the following pertains to the analysis of an applicants
personal information and determining whether insurance
should be issued or declined? -
..........ANSWER.......Underwriting
What does the Group Life underwriting risk selection process
help protect insurance companies from? -
..........ANSWER.......Adverse Selection
The Arkansas Life & Disability Insurance Guaranty
Association assures payment of benefits from insurance
policies for insolvent insurers, and covers all of the following
insured policies, EXCEPT: - ..........ANSWER.......Liability
Insurance
What would happen if a life insurance applicant is given a
conditional receipt from an insurance agent and then dies the
next day? - ..........ANSWER.......Claim will be paid if
application is approved
A life insurance policy owner does NOT have the right to: -
..........ANSWER.......Revoke an absolute assignment
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An employee under a group insurance policy has the right to
name a beneficiary and the right to: -
..........ANSWER.......Convert to an individual policy in the
event of employment termination
The two major actions required for a policyholder to comply
with the Reinstatement Clause are -
..........ANSWER.......Provide evidence of insurability, past due
premiums
Pat owns a 20-pay life policy with a paid-up dividend option.
Which of the following statements is true? -
..........ANSWER.......The policy may be paid up early by using
policy dividends
Ron has a life insurance policy with a face value of $100,000
and a cost of living rider. If the consumer price index has gone
up 4%, how much may Ron increase the face value of the
policy? - ..........ANSWER.......$4,000
($100,000 X .04 = $4,000)
Krissa purchases a 10-year level term life insurance policy
that has a death benefit of $200,000. Which of these
statements is true? - ..........ANSWER.......The face amount and
premium will remain constant over the 10-year period
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What is Arkansas' REQUIRED grace period for a life
insurance contract? - ..........ANSWER.......31 days
A domestic insurance company in Arkansas MUST -
..........ANSWER.......Be organized under Arkansas Insurance
laws
Simon has purchased a fixed immediate annuity. His payment
amount will be dependent upon principal, interest, and the
contract's - ..........ANSWER.......Income period
What kind of life insurance policy issued by a mutual insurer
provides a return of divisible surplus? -
..........ANSWER.......Participating life insurance policy
No one is allowed to act as a producer for any insurance
company in Arkansas that - ..........ANSWER.......Is
unauthorized to do business in Arkansas
What MUST the company do prior to conducting an HIV
related test? - ..........ANSWER.......Obtain a written consent
from the proposed insured
Which approach predicts a person's earning potential and
determines how much of that amount would be devoted to
dependents? - ..........ANSWER.......Human life value approach
ARKANSAS LIFE INSURANCE EXAM
2025 |ORIGINAL 240Qs&As|ALREADY
GRADED A+|100% VERIFIED
J is a producer who has induced an insured through
misrepresentation to surrender an existing insurance policy.
What is J guilty of? - ..........ANSWER.......Twisting
What is implied authority defined as? -
..........ANSWER.......Authority that is not specifically given to
an agent contract, but that an agent can reasonably assume to
carry out his/her duties
A person who is a nonsmoker, average weight, excellent health
would fall into what risk classification? -
..........ANSWER.......Preferred
Which of the following is considered to be the period when the
accumulated value in an annuity is paid out? -
..........ANSWER.......Annuitization phase
An insurers claim settlement practices are regulated by the: -
..........ANSWER.......State insurance departments
,2|Page
An insurers ability to make unpredictable payouts to policy
owners is called: - ..........ANSWER.......Liquidity
Which of the following pertains to the analysis of an applicants
personal information and determining whether insurance
should be issued or declined? -
..........ANSWER.......Underwriting
What does the Group Life underwriting risk selection process
help protect insurance companies from? -
..........ANSWER.......Adverse Selection
The Arkansas Life & Disability Insurance Guaranty
Association assures payment of benefits from insurance
policies for insolvent insurers, and covers all of the following
insured policies, EXCEPT: - ..........ANSWER.......Liability
Insurance
What would happen if a life insurance applicant is given a
conditional receipt from an insurance agent and then dies the
next day? - ..........ANSWER.......Claim will be paid if
application is approved
A life insurance policy owner does NOT have the right to: -
..........ANSWER.......Revoke an absolute assignment
,3|Page
An employee under a group insurance policy has the right to
name a beneficiary and the right to: -
..........ANSWER.......Convert to an individual policy in the
event of employment termination
The two major actions required for a policyholder to comply
with the Reinstatement Clause are -
..........ANSWER.......Provide evidence of insurability, past due
premiums
Pat owns a 20-pay life policy with a paid-up dividend option.
Which of the following statements is true? -
..........ANSWER.......The policy may be paid up early by using
policy dividends
Ron has a life insurance policy with a face value of $100,000
and a cost of living rider. If the consumer price index has gone
up 4%, how much may Ron increase the face value of the
policy? - ..........ANSWER.......$4,000
($100,000 X .04 = $4,000)
Krissa purchases a 10-year level term life insurance policy
that has a death benefit of $200,000. Which of these
statements is true? - ..........ANSWER.......The face amount and
premium will remain constant over the 10-year period
, 4|Page
What is Arkansas' REQUIRED grace period for a life
insurance contract? - ..........ANSWER.......31 days
A domestic insurance company in Arkansas MUST -
..........ANSWER.......Be organized under Arkansas Insurance
laws
Simon has purchased a fixed immediate annuity. His payment
amount will be dependent upon principal, interest, and the
contract's - ..........ANSWER.......Income period
What kind of life insurance policy issued by a mutual insurer
provides a return of divisible surplus? -
..........ANSWER.......Participating life insurance policy
No one is allowed to act as a producer for any insurance
company in Arkansas that - ..........ANSWER.......Is
unauthorized to do business in Arkansas
What MUST the company do prior to conducting an HIV
related test? - ..........ANSWER.......Obtain a written consent
from the proposed insured
Which approach predicts a person's earning potential and
determines how much of that amount would be devoted to
dependents? - ..........ANSWER.......Human life value approach
